NASHVILLE (AP) — Tennessee senators have watered down and passed legislation that critics still deem discriminatory.

The Senate amended and approved Republican Sen. Mark Green's bill Thursday. It heads to the House.

It says the state and local governments can't take action against businesses, including tax breaks and penalties, contracts, bonds or access to government facilities, because of their health insurance, family leave, minimum wage or antidiscrimination policies, if those policies comply with state law.

The bill originally applied to all internal company policies.

Tennessee Equality Project has raised concerns it would allow discriminatory or substandard benefit policies at taxpayer expense.

Democratic Sen. Jeff Yarbro said Thursday the bill would make state and local tax credits vulnerable to lawsuits. Cities oppose the legislation.

Green, a gubernatorial candidate, says the bill standardizes the law.